Fossil Annual Forecast and Holiday Sales Miss Estimates

NEW YORK, United States — Fossil Group Inc., a maker of watches, handbags and other accessories, tumbled as much as 14 percent in late trading after its holiday sales and annual forecast missed analysts' estimates.

Fourth-quarter sales rose less than 1 percent to $1.06 billion, the company said Tuesday in a statement. Analysts had predicted $1.12 billion on average, according data compiled by Bloomberg. Earnings amounted to $3 a share in the period, missing the $3.07 projection.

A strong U.S. dollar took a toll on sales last quarter, the Richardson, Texas-based company said. It also suffered from sluggish demand for watches and leather goods, though jewelry sales increased. Fossil’s shipments to major department-store accounts in the U.S. lagged as well.

“We are not entirely satisfied with our fourth-quarter performance and begin 2015 intensely focused on taking advantage of the many opportunities available to us to drive future growth,” Chief Executive Officer Kosta Kartsotis said in the statement.

The shares fell as low as $85 in extended trading after the results were released. Even before the decline, the stock was down 10 percent this year.

In 2015, the company now expects sales to range from a 3 percent decrease to a 1 percent increase. Analysts had projected a gain of about 5 percent. Earnings will be $5.45 to $6.05, compared with an $7.52 estimate.

By: Nick Turner and Lindsey Rupp; editor: John Lear.